Income Tax News: Extremely Useful! Want to Save More? Here's Your Comprehensive Guide to Smart Savings

Income Tax News: In India, taxes are levied on income, wealth, and property. Both corporate and individual income are liable to taxes in accordance with the laws of the land. The wealth tax also applies to an individual's or an entity's net worth of assets.

Explanation of investment instruments for claiming deductions

Income taxpayers always welcome the chance to reduce their overall tax liability and save money on taxes. There are numerous ways to legally lower your taxes under the Income Tax Act. Ten useful suggestions for taxpayers to think about are as follows:

Deductions Under Section 80C, 80CCC, And 80CCD

By investing in certain instruments, citizens can claim deductions, offering them the chance to save up to Rs 1.5 lakh.

Medical Expenses (Section 80D)

Tax deductions are available to salaried workers for medical insurance that covers dependent children, elderly parents, and spouses and allows claims up to Rs. 50,000.

Home Loan (Section 24)

Taxpayers who have home loans are eligible to deduct interest on their payments up to Rs. 2 lakh, with no upper limit in case the property is rented out.

Education Loan (Section 80E)

Taking out education loans allows people to deduct interest payments from their taxes, with no upper limit.

Shares and Mutual Funds (Section 80CCG)

Under the Rajiv Gandhi Equity Savings Scheme, individuals who invest in specific shares and mutual funds can receive additional deductions, provided their annual income is less than Rs. 12 lakh.

Long Term Capital Gains

By reinvesting the profits from the sale of long-term assets in particular securities, taxpayers can lower their tax obligations.

Sale of Equity Shares

By excluding tax on long-term gains for investors who hold their equity shares and mutual funds for more than a year, the government promotes investment in these securities.

Donations (Section 80G and 80GGC)

As long as the NGOs or political parties provide the necessary certificates, taxpayers who donate to social causes or political parties may deduct up to 50% of the donation amount and 10% of their adjusted gross income.

House Rent Allowance (Section 80GG)

If an employee's annual rent exceeds Rs. 1 lakh, they may be eligible to claim House Rent Allowance (HRA) under Section 80GG, which offers tax relief. Submission of the required paperwork is required; this includes the lease agreement and the landlord's PAN card.

Leave Travel Allowance (LTA)

Employer-provided long-term disability (LTD) benefits are tax-free if the recipient travels within India while on leave. This benefit is available twice every four years and includes travel with parents, spouses, and children.

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